RHIM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.9
| Stock Code | RHIM | Market Cap | 9,005 Cr. | Current Price | 436 ₹ | High / Low | 548 ₹ |
| Stock P/E | 49.9 | Book Value | 199 ₹ | Dividend Yield | 0.58 % | ROCE | 7.71 % |
| ROE | 5.62 % | Face Value | 1.00 ₹ | DMA 50 | 446 ₹ | DMA 200 | 469 ₹ |
| Chg in FII Hold | -0.37 % | Chg in DII Hold | 0.39 % | PAT Qtr | 41.3 Cr. | PAT Prev Qtr | 46.5 Cr. |
| RSI | 48.2 | MACD | -7.03 | Volume | 2,24,848 | Avg Vol 1Wk | 4,61,025 |
| Low price | 376 ₹ | High price | 548 ₹ | PEG Ratio | -8.58 | Debt to equity | 0.02 |
| 52w Index | 34.9 % | Qtr Profit Var | -15.4 % | EPS | 8.74 ₹ | Industry PE | 40.9 |
📊 Analysis: RHIM trades at a premium valuation (P/E 49.9 vs industry 40.9) despite weak efficiency metrics (ROCE 7.71%, ROE 5.62%). The current price (₹436) is below both 50 DMA (₹446) and 200 DMA (₹469), showing technical weakness. RSI at 48.2 indicates neutral momentum, while MACD (-7.03) confirms bearish divergence. Quarterly PAT declined (₹46.5 Cr → ₹41.3 Cr), with profit variation at -15.4%, raising concerns. EPS at ₹8.74 is modest relative to price, and PEG ratio (-8.58) signals poor growth valuation. Despite low debt-to-equity (0.02), fundamentals and technicals suggest caution for swing trading.
💡 Optimal Entry Price: Around ₹420–₹425 (near support zone).
🚪 Exit Strategy: If already holding, consider booking profits near ₹460–₹470 (DMA resistance). Exit below ₹415 if weakness persists to protect capital.
✅ Positive
- Low debt-to-equity ratio (0.02) ensures financial stability.
- DII holdings increased (+0.39%).
- EPS of ₹8.74 shows consistent earnings, albeit modest.
⚠️ Limitation
- Valuation premium (P/E 49.9 vs industry 40.9).
- Weak ROCE (7.71%) and ROE (5.62%).
- Price trading below both 50 DMA and 200 DMA.
- MACD indicates bearish trend.
📉 Company Negative News
- Quarterly PAT declined (-15.4%).
- FII holdings decreased (-0.37%).
- 52-week index at 34.9% shows weak price performance.
📈 Company Positive News
- DII support increased slightly.
- Debt-free balance sheet provides stability.
🏭 Industry
- Industry P/E at 40.9 highlights RHIM’s premium valuation.
- Refractories sector is cyclical, dependent on steel and construction demand.
🔎 Conclusion
RHIM is fundamentally weak with stretched valuations, declining profitability, and bearish technical signals. While low debt and modest institutional support provide some positives, it is not an ideal swing trade candidate. Entry near ₹420–₹425 may offer short-term opportunities, but exit near ₹460–₹470 is advisable. Risk management is critical due to weak fundamentals and momentum.